CREDIT CARDS » Credit Card Rates

One part of credit card companies' arsenal in the war against fraud is the three-digit security code found on the back of your credit card.

Why is the security code there?

Your credit card's security code is designed to make fraudulent purchases more difficult. It's primary angle is to make it a more certain that, in electronic or phone transactions, the card is actually with the person making the purchase.

If a thief has somehow gained access to your credit card information, they most likely won't have the security code because it is never included with your credit card information. It is also not printed in of one of the raised numbers on your credit card, so if a merchant makes a copy with the printed carbon method then the three-digit security code will not be retained as part of that information. So, no thief will be able to fish through Dumpsters in order to find your three-digit security code.

Remember, the code doesn't make your credit card fraud-proof

The security code on the back of your credit card has gone a long way to putting a dent in credit card fraud.

However, thieves have gotten smarter about it. One new tactic is to find your credit card information and then e-mail you with it, pretending to be your credit card company. They then ask you for your three-digit security code. Many recipients of the e-mail think it must be legitimate since it contains your information, and so they respond by giving out their security code.

To learn more about your security code, credit cards or any other credit-card related topic, be sure to speak to a representative of your credit card company.

For whatever reason, people cancel their credit cards soon after getting them.

When this happens, the credit card issuer will very often level what is called a "closed account fee." A closed account fee penalizes a card holder if he or she cancels their credit card within a certain time period after opening it.

Why would someone cancel a card so quickly?

Sometimes a credit card will tempt us with promises of low interest rates and other advantages, and once we get the card they turn out to be not as clear-cut as they'd been advertised.

This happens all the time, and that disappointment will very often make people cancel their new credit cards. This is when the credit card issuer will levy a closed account fee. Closed account fees can range anywhere for $5 - $45, and they can apply anywhere from 3-6 months of opening the credit card account.

Another common reason for early cancellation of a credit card is when a person transfers their balance from one credit card to another in order to take advantage of a low introductory interest rate. Once that period of low interest rate charges expires, it can be tempting to transfer a credit card balance to yet another credit card, and take advantage of their low introductory interest rate offer.

To learn more about closed account fees, transferring a balance from one credit card to another, hidden fees, penalties, low introductory interest rates, or any other aspect of a credit card, be sure to consult with a financial professional.

They help people find the best credit card rates all the time, and also have a lot of suggestions on how to avoid closed account fees and other credit card penalties.

In theory credit card protection sounds like a good idea. If a consumer has a credit card protection plan and is no longer able to pay the balance on the credit card due to job loss or illness, the credit card protection will cover the minimum payments of the credit card until you are able to...

Credit card companies are not immune to the credit crisis, and one way they're protecting themselves is by lowering credit limits wherever and whenever they can.

You might have a perfect payment history and still wake up to a $5,000 card limit that's been reduced to $500.

One of the...

Somewhere in the world, a person is reviewing a stack of mail and among their correspondence is an offer from a credit card company stating "you have been pre-approved!"

Many times people shred the offer, but if you are looking for a new line of credit there are many benefits to having a...

Credit cards make a lot of their profit from fees and penalties leveled against their members. Late fees, over-limit penalties, and other sundry charges are of critical importance to the credit card companies.

As part of their tactics to squeeze more money out of members in the form of...

Since the 1970's, credit cards have become the most convenient way to pay for consumer purchases. Without them, international travel, emergency car repairs, Internet shopping and renting a car would be nearly impossible. The amazing thing about most credit cards is that they have tons of hidden...

Many credit card holders will be able to breathe a sigh of relief as they receive favorable deals from credit card issuers prior to the new law taking effect in February 2010.

As a way to clean up their image after hearing months of criticism from President Barack Obama and Congress, major...

Many people like to transfer their credit card balances from one card to another. They usually do this because the new card offers a tempting introductory grace period where interest rates on the debt are either zero or very low.

These grace periods, which can last for as long as a year...

For many people, the terms used by credit card companies can be bewildering.

Whats the difference between your annual percentage rate and your daily periodic rate? Or your monthly finance charges, or your average daily balance? Well, take heart and be of good cheer, for here is a handy...